Jeff R. in West Dundee: set to lose $316K in equity in 13 years

Jeff is trying to sell his 3,504 square foot, four-bedroom, four-bath home located in West Dundee for $549,000.

He bought the home in 2005 for $671,000, or $865,000 in today’s dollars.

Jeff’s tax bill was $15,141 in 2017. He has paid about $177,467 in property taxes over a 13 year period of West Dundee home ownership, or 32 percent of the current asking price.

Jeff’s home value decreased by around 37 percent during his ownership.

Jeff’s home value decreased by around 37 percent during his ownership.

Indiana has a hard 1 percent cap on property taxes. This means local governments are not allowed under state law to charge homeowner’s more than 1 percent of their home’s assessed value per year. The average property tax rate for the state of Indiana is 0.89 percent. Meanwhile the average property tax rate in Illinois is 2.3 percent.

If Jeff’s home had been in Indiana the most he could have been charged in property taxes would have been around $4,444 per year or $9,779 less than what he last paid on his West Dundee home.